Stuck in co-signed debt

Unfortunately you are on the hook for this. You need to contact creditor about this. Ask them how much was received from insurance company and applied to loan.Next ask them for an itemized bill showing payment history and all legal charges they are allowed to collect. I strongly suggest you work this out with creditor.

That was really awful of this person to stick you with this. Has he/she offered to make some kind of restitution?

:oops: dbaker caught me! I should have realized that their was another party involved. If that party does not want to pay a debt that they signed on,you may have to file suit.

But in the mean time you must talk to the creditor and work things out. You can sue the other party, but the creditor can sue you too. It will also affect your credit report. The best thing to do is work out something with the creditor. The advice about getting a statement showing all the charges, payments, and insurance amount is a good place to start. Don't just ignore it thinking it will go away . . . . . And I wouldn't count on the other party to step up and pay up. If they had you co sign for a car and then left you high and dry with the bill they aren't a very good friend.

Talk to an attorney and put legal pressures on your friend if he is not willing to take care of the car debt. You co-signed the loan as a good friend. Since he crashed the car, his debt should not be a burden on you. Be quick in what you will be doing because the creditor sees you equally responsible for the debt.

Most likely if your friend left it in the impound lot, it was because he didn't have insurance and knew the damage was far too severe too fix on his own...

Question?? Did you sign the front of the contract as a co-borrower, or did you sign the back of the contract as a guarantor? Big difference, being: if you are a co-borrower, they can come after you without a moment's notice. BUT if you are considered a guarantor, the creditor must exhaust their legal efforts on the borrower before they can come after you.

Most likely you signed on the front of the contract. If that is the case, you should make arrangements to satisfy the balance before they come after you, or even worse, decide to sue for it.

Unfortunately I see this all too many times, where a person co-signs without realizing what they're getting themselving into .... When you co-sign you are vouching for the other person, you are telling the creditor, "I trust this person so much that I am willing to pay you if they don't." Sorry you had to learn this the hard way, but the debt will not go away by ignoring it.